A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Author: Mark Fletcher

Lucky shopper campaign works

While we did not find the “lucky shopper” I blogged about a month ago, we have noticed a considerable reduction in suspicious behaviour in the stores where theft was of most concern.

In one store we were encountering at least two potential shoplifting situations each day.  Now, we are seeing this once, maybe twice a week.

The lucky shopper approach is not the solution, but it is a useful tactic to employ from time to time.

It all comes down to risk.  Is they suspect there is a reasonable risk, they will not try it on.

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theft

Lottery sales up 17% year on year

Our lottery sales are up 17% in the last three months compared to the same period last year. We feel this is pretty good given that a year ago federal government stimulus money was still around. OzLotto was growing to $40 million and this was driving sales.

Some of our growth has been built around our syndicate business. This is developing well thanks to the efforts of our team at Forest Hill. The rest of the growth has come from regular sales.

Factors we feel have helped us achieve this 17% growth are:

  • Promotion of lottery products outside the dedicated lottery area.
  • Good traffic management – lottery customers like not having to wait for their purchase.
  • Menu based price offers for each game at each counter, even outside the lottery area.
  • Not forcing customers to buy only at the lottery counter.  We are happy to process lottery salesat any counter position.
  • Being open long hours. While most lottery outlets around us are closed on Thursday and Friday evenings and Sundays, we are open.
  • Cheerful customer service.
  • Happily doing payouts for larger amounts and for tickets not purchased from us.
  • Connecting with the theme of luck in a variety of ways.

Our growth numbers and how we achieve them are more important than running the business to rigid rules.  We are proud of the outcome we are achieving by being flexible and proactive.

I’d be interested in ideas from others as well as their growth percentage.

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Lotteries

Conroy defends $250 million gift to TV networks

Communication Minister Stephen Conroy was on the Jon Faine morning program on ABC Radio in Melbourne yesterday defending the federal government decision to hand $250 million in the form of licence discounts to the TV networks.  It made for interesting listening.  Click here to hear the whole interview.

Conroy pleads the case that the TV networks are going through considerable structural change and that the government should support them in this.

He also defends his regular meetings with heads of networks and other media outlets.

Newsagents are going through a more extensive and expensive structural change and the federal government, this one and the last one, is not offering any support.  In relative terms, the impact of structural change on newsagents is greater than the TV networks yet we don’t even get anywhere near the table for a discussion.

The best way for us to express our disappointment at the $250 million to TV networks and continued ignorance of the cost of structural change on our local family-run businesses is to write to our local members – regardless of their political colours.  I did this recently on another issue and received excellent support.

It is around this issue of the cost of structural change that the government has, through Conroy, articulated a precedent.  We can meet the ‘test’ laid down by Conroy and should therefore be in line for financial support to help us navigate structural change.

Listen to the interview and judge for yourself whether Conroy was successful in defending the government decision.

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Media disruption

Cat magnets sell out

cat_rocks.JPGThese Cat Magnets have sold our at the counter in less than two weeks at our newsXpress Forest Hill.  They are a good margin impulse purchase item.  While we would not usually order more of a counter offer, we have in this instance because of their popularity.  Sourced by our manager through Gibson Imports, they are a good example of pitching an impulse offer to your average shopper.  We only have them at one store – where we knew they would work.

The basket in the photo shows that a beautiful display is not always necessary to drive good sales.

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Gifts

Mini cookbook sale

cookbooks.JPGWe are running a mini cookbook sale on a table where will place Easter gifts and which held part of our Valentine’s Day display.  While the cookbook range is not big, it is enough to provide range and an offer.  The cookbooks are selling.  This display has the dual purpose of showing that we have a book offer in-between major book seasons.

I’d note that not all books on the table are discounted.  We also have our full price and popular kitchen and cookbook journals.

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Book retailing

A good iPad business model for news

Martin Langeveld writing at the Nieman Journalism Lab has written an excellent piece on business models for the iPad.  He works through challenges within publishing businesses on how to leverage the iPad.

I like the assumptions on which based his suggested strategies:

  1. The mobile web will be ubiquitous — upward of 70 percent of adults will be connected to the web on mobile platforms virtually all of their waking hours.
  2. All forms of media consumption will move to mobile platforms, especially the iPad and its competitors and successors, at an increasing rate.
  3. Marketers will shift their budgets to mobile platforms (and out of both newspapers and direct mail) at an increasing rate.
  4. Consumers will respond strongly to mobile pitches in the form of ads, video, social recommendations, online catalogues, deals-of-the day (like the explosively growing Groupon — an operation newspapers should be partnering with), and other channels yet to be invented.

Go to the article to read the strategies which flow from these assumptions.  They come down to a call to action to publishers to embrace devices like the iPad.  It or something like it is the next generation distribution channel.

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Media disruption

Publishers complain about BBC iPhone app

UK publishers are rallying against the BBC and the plans of the corporation to launch iPhone apps to provide easier mobile access to BBC content.

Every smart content providor, government owned or not, will be in the iPhone App space.  The challenge for commercial publishers is real as it is for us who live in the print world.

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magazines

Another People’s Friend screw up at Gotch

peoples_friend_weekly.JPGIn two of my stores this morning we received bulks of My Weekly labelled as People’s Friend magazine.  In each case, People’s Friend is in out top five weekly titles.  This screw up will leave many unhappy customers.  It will also make us look bad, again.  I say again because there have been regular People’s Friend supply issues ove the last year.

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magazine distribution

Food magazines strong in latest audit

Most food titles performed well in the latest audit.  From the high end to the supermarket connected titles, the food category delivered the best category level growth.

We saw this trend last year and created a column for co-locating food magazines as I blogged in June last year.  The column of food titles we integrated with our weekly magazines display has helped is drive excellent sales.

Now that the audit data is out newsagents have more reasons than ever to refresh their food title offer, ensuring it is in a good location and finding space for co-location strategies.

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magazines

Which is better: Holden or Ford?

holden_vs_ford.JPGThe Holden vs Ford cover for Australian Classic Car magazine, their 200th issue, is why we are promoting this at our main newspaper stand.  This quintessentially Australian debate should drive a good sales kick – that’s what we hope for at least. By placing the title with newspapers shoppers can see the Holden vs Ford pitch whereas in traditional magazine fixturing it is missed.  That said, it’s also in its regular location.

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magazines

Good early Easter card sales.

fhn_easter_2010.JPGWe have had our Easter card range out since Valentine’s Day came down on Monday. They started sellinh almost right away.  We have noticed that plenty of customers buying more than one card. We have the full Easter range from Hallmark covering all captions and price points.

Our Easter card sales have been growing in recent years. One factor in this growth is going out early with the season. Customers like to buy easter cards early and get them in the mail.  I suspect this is because Easter card buyers are the more devoted card buyer.

We have our Easter cards displayed on movable units and thereby not reducing space from lifestyle cards.  Cards in drawers don’t sell.

We have some of our Easter gifts out and more will go out in the next week.  We find that they tend to sell closed to the time.

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Greeting Cards

Trying a mid month newsletter

sophie_randall_newsletter.jpgClick here to see a copy of the latest newsletter from our Sophie Randall gift shops. We have gone to a mid month publishing date as this fits better with our seasonal marketing plan. The newsletters are very popular with our customers, we have good evidence that they drive sales. This year, we also changed approach to connect with themes. Last issue it was Love for Valentine’s Day. This month, it’s Smile to connect with card giving occasions outside of major seasons.

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Customer Service

Speedway Racing News publisher does not care

Further to my post yesterday about Speedway Racing News advertising directly against newsagents, David Tapp, Managing Director, had this to say to a newsagent who complained to him:

Thanks for your email.  It’s a pity you feel the way you do. Thanks for taking the time to write.

This demonstrates a lack of understanding and care for the key retail distribution network for the title.  The years of support through space allocation and merchandising is worth nought it would seem.

No wonder newsagents are quitting Speedway Racing News.  We are.  Publishers need to respect our channel.  Using us to promote against ourselves is appalling behaviour.

The challenge now is to get the distributor to honour the wishes of newsagents.  Yes, our magazine distribution system is so broken that titles newsagents say they do not wish to carry often work their way back onto the shelves.

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magazines

Australia Post on opposition radar

I was pleased to hear shadow Treasurer Joe Hockey’s comments about Australia Post in a speech to the National Press club un Canebrra earlier this week.

I do send this warning to Australia Post: Do not go into banking. Do not be conned into the Rudd Government rhetoric about going into banking, because we would strongly oppose any attempt by the Rudd Government to set up a government bank – full stop,

With the role of Australia Post on their radar, newsagents have an opportunity to lobby local members through to the opposition leadership about the damage the Australia Post government owned stores are doing to family owned newsagencies and other small businesses nearby.

Australia Post continues to push its corporate stores into newsagency related areas without the costs of our private businesses.

While a banking move by Australia Post would concern the big end of town, down here in the small business end we are finding ourselves competing more with this government owned and protected retail network. I’d like the opposition to take a stand for small business.

Related to this is news that there is apparently growing support for an Australia Post bank.

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Australia Post

Promoting Men’s Health and Women’s Health together

fhn_mens_womens_health.JPGIt is great to see Men’s Health and Women’s Health now published on the same day.  This provides us a good opportunity to promote both titles together -as we have done this week at our Forest Hill store.

This display is located at the front of the store in a high traffic area.  We plan to leave this display up for a week.

We also have Women’s Health displayed with women’s magazines as well as in the health section.

We have Men’s Health displayed in our men’s sports section.  We will also place it with newspapers later in the sales cycle.

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magazines

AFL Select tags in-store now

afl_select.JPGOur first AFL collectible products for the 2010 season arrived yesterday – the Select Tags. We have these at the counter, in the same location they have performed well at before. They are a kid-friendly height. Based on other sales for AFL products, I’d expect AFL cards and similar items to perform well this year.

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Newsagency opportunities

Newsagents set to kill Speedway racing News?

speedway_raacing_news.jpgNewsagents reading the inside back cover of Speedway Racing News this morning where shocked to see the publisher actively promoting against the newsagency channel.  Click on the image for a larger version of the page.  Subscribe & Save is the headline.  It then pitches: Have your copy home delivered and received SRN 3 days earlier than you can find it in a newsagent! 

Way to go publisher of Speedway Racing News – a very respectful move against the retail channel which gives you space every week.

I have heard from many newsagents already that they are taking the title off and early returning this with a request to no longer receive stock.   If enough newsagents took action it could seriously hurt this small title.

The publisher needs to address the issue immediately and start working with newsagents on growing newsagency sales rather than hurting them.

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magazines

The frustration of new magazines

fhn_artist_profile.JPGWe received five copies of Artist Profile magazine from Next Media this morning. This is a new title for us. Some bright spark decided to risk our money, time and space in supporting this title.

This is the problem with the magazine distribution model. Newsagents, the bankers, are forced to provide credit to publishers and distributors, take the risk of theft and give up expensive space to support titles others think we should carry. Had I been given the opportunity to decide on this title I may have said yes.

That I was not given an opportunity says that my business acumen counts for nought. Publishers and distributors who complain that newsagents are not business people ought to think about this. Their actions often deny us the opportunity to be business people.

Publishers and distributors need us and they say they like and respect our channel. They ought to show us this through fairer and more inclusive actions.

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magazine distribution

600% supply increase fails

gameinformer_dud.JPGThe 600% increase in supply for Gameinformer magazine we received last month failed to result in a sales lift.  We returned 80% of supply today.  All this did was muck up our cash-flow.  The publisher and the distributor forced us to partner with them in their experiment.  Newsagents don’t have the financial or space capacity to support publishers wanting to grow sales by shipping more product to the retail channel.

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magazine distribution

Did newsagents play a role in the sales fall of Alpha?

Alpha magazine recorded the biggest sales fall in the six months to December 31, 2009 as reported by the Audit Bureau of Circulation and I wonder if newsagents played a role in this.

The 30.7% decline in sales is extraordinary.  It represents 30,000 fewer copies sold.

In April last year, Alpha changed its distribution and newsagent compensation models.  The 40% cut to newsagent income from the sale of Alpha hurt.  Many newsagents reacted by removing Alpha from the premium location next to newspapers and placing it with other sports related titles, usually toward the back of the store.

While we will never know if this action played a role in the steep sales decline, I suspect that it did based on the number of newsagents I heard from who wanted to make a point about their treatment over Alpha.

Read my blog post from March 28 last year for the back story.

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magazines

Who owns the iPad customer?

Ownership of the customer has emerged as an issue in discussions between publishers and Apple according to a report at FT online overnight.  I am sure this will be resolved, the iPad buzz and opportunity are too great for either side to let it stall as a delivery channel.

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magazines

Alice in Wonderland magazine offer opportunity

alice_in_wonderland.JPGThe magazine covers featuring Alice in Wonderland are providing us  a rare opportunity to promote titles together.  As the Empire and Lovatts Clue Words examples in my photos show, these covers need to be fully seen. Old magazine fixturing lets them down.

In addition to displaying these titles in their usual locations, we are placing them together.  Who knows, the Alice in Wonderland cover could attract someone to the title who would not usually purchase this. Once promotion for the film reaches full strength, I’d expect us to have five, maybe six, titles we could promote together.

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magazines

Visual merchandising ideas for newsagents

newsXpress is publishing photos almost daily of displays for key promotions.  Recently, it was Valentine’s Day.  Now it is Back to Work.  Newsagents looking for visual merchandising ideas from a variety of newsagents should check the blog out at www.newsxpressblog.com.au.  Anyone can visit – there is no login required.

Great visual merchandising displays attract traffic and drive sales.   They make the business look relevant, enjoyable and a good-value place to shop.

Disclosure: I am a Director of newsXpress Pty Ltd.

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Newsagency opportunities

The craft, quilting, cross stich, knitting and quilting magazine offer

craft_titles.JPGSomeone in a comment here asked me to post a photo of what our craft area looks like.  I forget the context, sorry.  The photo shows how the craft magazine display looked yesterday morning.  Looking at it now, it certainly needs some work to tidy segments and beacon brand popular titles.

Sales of craft related titles are not what they were a year ago.  We promote them from time to time outside their usual area with little impact.

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magazines

Promoting InStyle magazine at the counter

fhn_in_style_feb10.JPGWe are promoting InStyle magazine at the prime promotional location between two busy counter locations.  The free gift makes it a true premium offer.  The can of free dry shampoo spray which comes with the issue makes displaying in regular magazine fixturing a challenge so this display also helps out on that front.

We have placed Women’s Health next to InStyle since we expect them to appeal to the same customer.

Both magazines will remain in this location until the weekend when we will review the numbers.

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magazines
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